China overtakes US to become world’s richest country as global wealth rises
China’s wealth increased to $120 trillion in 2020, from just $7 trillion in 2000. This marks a jump of $113 trillion over 20 years, helping the country to overtake the United States in terms of net worth.
According to a new research report, China has overtaken the US to become the richest country in the world. The report, authored by the research wing of McKinsey & Company, said global wealth has tripled in the past two decades, from $156 trillion in 2000 to $514 trillion in 2020.
The report has been prepared after examining the national balance sheets of 10 countries representing more than 60 percent of world income. “We are richer now than ever,” said Jan Mischke, a partner at the McKinsey Global Institute in Zurich, in an interview with Bloomberg TV.
According to the data revealed, China has increased the global wealth by almost a third. The nation’s wealth increased from $7 trillion in 2000 to $120 trillion in 2020. The data tracks the period a year before the country became a member of the World Trade Organization (WTO), which accelerated the rise of its economy. ,
The report analyzed the national balance sheets of 10 countries, which account for more than 60 percent of the world’s income. Apart from China and the US, the countries in the report include Germany, France, Britain, Japan, Sweden, Mexico, Canada and Australia.
As far as America is concerned, the total wealth of the country has increased to about 90 trillion dollars in two decades. In both the US and China, the two largest global economies, more than two-thirds of the wealth is concentrated in only 10 percent of the richest households. According to the report, about 68 percent of the global net worth is stored in real estate.
China’s wealth increased to $120 trillion in 2020, from just $7 trillion in 2000. This marks a jump of $113 trillion over 20 years, helping the nation to overtake the United States in terms of net worth.
The report also indicated that 68 per cent of the global net worth is stored in fixed assets and the rest is held in assets such as infrastructure, machinery and equipment. Intangible assets such as intellectual property and patents also make up a small amount of global net worth.
The McKinsey & Company report also indicated that the sharp increase in net worth over the past two decades has outpaced global GDP growth and has resulted in skyrocketing asset prices as a result of falling interest rates.
The research found that property prices are about 50 percent higher than their long-term average relative to income. This raises questions about the stability of the wealth boom.
China overtakes US to become world’s richest country as global wealth rises
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